Australian billionaire Brett Blundy is escalating his campaign to oust the long-term chair of Victoria's Secret & Co, Donna James, ahead of the company's annual meeting on Thursday. Blundy's investment firm, BBRC International, holds about 13% of the US-listed lingerie brand, making it the second-largest single shareholder and potentially positioning it for a hostile takeover.
Blundy, who has a net worth of $4.5 billion according to the AFR's rich list, has been pushing for board changes since 2021 and has unsuccessfully sought a director position. He went public in May, calling for the removal of James and another director, Mariam Naficy, who has since decided not to seek re-election. Blundy argues that the board has caused 'years of value destruction, misallocated capital and anti-stockholder governance.'
Victoria's Secret board has rejected Blundy's requests, citing 'significant reputational risk' due to his involvement with Lovisa and Honey Birdette. Lovisa is facing a class action over alleged unpaid overtime, while Honey Birdette has denied reports of sexist dress codes. The company also alleged that a BBRC advisor falsely claimed to work with Victoria's Secret to obtain confidential sales data, which BBRC disputes.
To ward off a potential hostile takeover, Victoria's Secret has implemented a 'poison pill' that would dilute any investor's stake exceeding 15%. Three proxy advisory firms—ISS, Glass Lewis, and Egan-Jones—have backed the board, arguing it is best positioned to enhance shareholder value. ISS acknowledged Blundy's concerns but noted that the company's performance has improved since its spin-off from L Brands in 2021.
Victoria's Secret shares have risen over 50% in the past month, bolstered by a strategy to reposition as a high-end brand and the revival of its annual fashion show. The vote will take place at the annual meeting at 8:30 am Eastern Time on Thursday.
